Cleanaway Waste Management will acquire waste cooking oil collector and preprocessor Australian Eco Oils for $39 million.
In FY24 the oils business is expected to generate annualised EBITDA profit of around $6 million.
Operating throughout NSW, Queensland and Victoria, the company operates under the Scanline brand, and claims the most advanced collection technology, including containers, drums and vacuum trucks, to ensure fast collection of used cooking oil.
The company services over 3,000 hospitality and food industry clients processing more than 11,500 tonnes of used cooking oil.
The company is a pioneer of the circular economy, transforming what was once a troublesome waste product into valuable new resources including stockfeed and renewable fuels.
The acquisition included three processing facilities in Riverstone, NSW, Rocklea, Queensland, and Laverton in Victoria.
Cleanaway CEO and Managing Director Mark Schubert said the acquisition provided an attractive point of entry into a new, adjacent market for the company.
This came at a time when demand was rising for sustainable aviation fuel and renewable diesel.
Schubert said: “The business will form part of our liquids and technical services strategic business alongside our leading grease trap business to expand our service offering to restaurants and other food service customers with more circular and low carbon solutions.”
Under its Blueprint 2000, Cleanaway is studying ways to extract fats and oils from other waste streams to supply renewable fuels.
“Subject to Australia adopting supportive regulations in line with many European and North American markets, we would look to buy back renewable fuels to accelerate our CO2 emissions reduction and be able to provide a circular solution to customers.”
Picture: Scanline/cooking oil recycling